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Table

The capacity utilization of the country's bath soap industry, 2005-2009

Year Cap. Utilization (%)

2005 XX.X
2006 XX.X
2007 XX.X
2008 XX.X
2009 XX.X

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Backgrounds

With a population of around XXX million in 2011, Indonesia provides a potential market for toiletries including bath soap. The types of bath-soap found in the market include bath and toilet soap and medicated and disinfectant soap.

Bath-soap industry has expanded in Indonesia since the 1980s and the expansion has been fast with the availability in abundance of the basic material Crude Palm Oil (CPO). The expansion of the bath-soap industry is shown in the production capacity that surged to XXX,XXX tons in 2009 from XXX,XXX tons in 2005. The country's production of bath soap has increased from year to year from XXX,XXX tons in 2005 to XXX,XXX tons in 2009.

Indonesia has exported part of its bath-soap production though relatively small in quantity. Exports of bath-soap totaled XXX,XXX tons valued at US$ XXX,XXX in 2005, up to XXX,XXX tons valued at US$ XXX,XXX in 2009.

Earlier the Indonesian people knew only PT. Unilever as major producer of bath-soap in the country with the brand of Lux. Lux bath soap dominated the market for a number of decades in Indonesia, before new products of other producers entered the market.

Production capacity

In the period of 2005-2009, the country's production capacity for bath-soap increased sharply from XXX,XXX tons per year in 2005-XXX to XXX,XXX tons a year in 2008 and 2009.

Most of the producers of bath soaps are located in West Java and East Java. See the following table.

Production up X.X% per year on the average

The types of bath-soap consist of bath and toilet soap and medicated and disinfectant soap. Bath and toilet soap dominates accounting for XX% of the country's total production of bath soap with medicated and disinfectant soap making up the rest.

In the period of 2005-2009, the country's production of bath-soap grew X.X% per year. In 2005, the production was recorded at XXX,XXX tons--up to XXX,XXX tons in 2009. In 2010, the production was estimated to reach XXX,XXX tons and rose to an estimated X,XXX,XXX tons in 2011.

Capacity utilization up

The capacity utilization of the country's bath-soap industry has continued to increase from year to year as indicated by the increase in production. In 2005, the capacity utilization was XX.X% with production at XXX,XXX tons. The capacity utilization rose to XX.X% in 2006 with production at XXX,XXX tons. In 2007, the capacity utilization rose further to XX.X% with production at XXX,XXX tons. In 2008 and 2009, the capacity utilization was XX.X% and XX.X% respectively. See the following table.

Exports up

In the 2005-2009 periods, the country's exports of bath-soap grew XX.X% a year to reach XXX,XXX tons in 2009 from only XXX,XXX tons in 2005. Currently, there are around XX products of bath soap exported from the country. Among the products or brands are GIV, NUVO, Harmony, Lether (Gold and Classic), Royal Premium, Fres, Lark, Lervia, Anita and Santax.

Exports have been made to various countries mainly African countries. According to the trade ministry, in 2009, exports to Africa included to Ethiopia making up XX.X%, to Senegal X.X%, Tanzania X.X%, Mozambique X.X%, Algeria X.X% and Mauritius X.X% of the country's total exports.

Exports have even been made to China although only X.X% of the country's total exports. Exports to other Asean countries include to Malaysia making up XX.X% and Thailand X.X% of the country's total exports. To New Zealand, exports made up X.X% of the country's total exports..

Based on data from the Central Statistics Agency (BPS), the country of destination has increased from year to year from XXX countries in 2005 to XXX countries in 2009.

PT Unilever Tbk, which is the country's largest producer of bath soap, started exporting bath soap to Africa in May 2010. It exported Lux bath soap to Ghana and the Ivory Coast on request of the Unilever branch in Africa.

Other bath soap exporters include PT Sayap Mas Utama of the Wings Group exporting bath soap to a number of countries including the Philippines and Nigeria.

PT. Megasurya Mas (PT. MSM) exported bath soap with the brands of Harmony and Lervia to various countries. The exports of PT. MSM have continued to increase in value growing XX.XX% a year in the past five years. Its main countries of destination are India (XX.XX%), followed by Panama (XX.XX%) and Pakistan (X.XX%).

Imports of bath-soap

While being an exporter, Indonesia also imports bath soap but relatively small in volume and limited to certain types of soap such as ones having therapy aroma.

PT. P&G Home Indonesia sells bath-soap imported from sister company P & G in the Philippines.

In 2006, imports of bath-soap totaled X,XXX tons up from X,XXX tons in 2005. In 2007 and 2008 imports of bath-soap fell to X,XXX tons a year, before rising to X,XXX tons in 2009.

Market size

Domestic consumption of bath soap is supplied almost entirely from local producers. Imports are almost insignificant. Domestic consumption could be assumed as equivalent to domestic supply or production plus imports minus exports.

In the period of 2005-2009 consumption of bath-soap grew X.X% per year on the average. In 2005, the domestic consumption of bath-soap was recorded at XXX,XXX tons--up to XXX,XXX tons in 2009.

In 2010, consumption of bath-soap was estimated to rise further to XXX,XXX tons and up again in 2011 to XXX,XXX tons.

Big Players

PT. Unilever Tbk

PT. Unilever Tbk started operation in Indonesia in XXXX. Currently Unilever has two factories located in Cikarang, West Java and Surabaya, East Java. The products of Unilever include personal care, home toiletries, foods, nutrition, health & beauty care.

Unilever produces bath-soap with the brand of Lux long popular and dominating bath soap market in the country. Lux is used by middle to high class consumers. Later Unilever launched new variants of bath soap including Dove and Citra, and later again it produced liquid forms of Lux, Lifebuoy, Dove and Citra.

Unilever is estimated to contribute XX% or XXX,XXX tons to the country's total production of bath soap. The company sells XX% of its production on the domestic market with exports making up only X% of its total sales.

PT. Sayap Mas Utama

The company belonged to the Wings Group with parent company Fa Wing, which was established in XXXX in Surabaya, East Java. In 1991 the name of the company was changed with PT. Wing Surya.

The Wings Group started operation by producing green laundry soap manually with the brand of Ekonomi. Ekonomi succeeded in entering the market in late the XXXXs. Later the Wings Group launched new products detergent cream and bath soap with the brand of Wing.

The business flourished and the company group expanded by establishing PT. Sayap Mas Utama (PT. SMU) with factory in Jakarta producing toiletries, bath-soap, face powder and detergent, floor cleaner, fabric softener and sanitary napkins sold all over the country.

PT. SMU started by producing bath-soap with the brand of GIV. Later PT. SMU also produced medicated soap with the brand of Nuvo.

The Wings Group produces various types of household cleansing products from toothpaste and shampoo to detergent and porcelain cleanser. The products are sold with the brands of Ekonomi, Daia, SoKlin, and GIV.

PT. Megasurya Mas

The company was established in 1992 in Surabaya, East Java producing bath-soap, margarine and cooking oil. Its products include bath soap with the brands of Lervia and Harmony, medicated soap with the brand of Medicare and cooking oil with the brand of SunCo.

Around XX% of perfume needed by PT. MSM is supplied by the Symrise Group from Germany. Currently XX% of its production is exported. PT. MSM has secured a number of certificates including Certificate of GMP in Iran, ISO XXXX (2000), ISO XXXXX (1996), HACCP and GMP.